Soyabean futures at the Chicago Board of Trade closed higher on Tuesday amid a lack of crop-enhancing rainfall over the weekend in the dry eastern US Midwest, traders said. CBOT soya closed 2-1/4 to 14 cents per bushel higher. July was up 12-1/2 at $6.80-1/4 per bushel. Volume was estimated at 87,868 futures and 32,310 options.
"We're a weather-charged market right now and we didn't get as much rain over the weekend as was needed," said Don Roose, president of US Commodities, Des Moines, Iowa.
Dryness remained a concern in the eastern US Midwest corn and soya growing region, a private forecaster said on Tuesday.
"The problem area is the eastern Midwest, where it continues dry. They need rain and there is only limited rain for the next five-day period," said Meteorlogix forecaster Joel Burgio.
Burgio said only light showers dotted the eastern Midwest over the weekend while beneficial rains were noted in the western Midwest. There was a better chance of rain next week in the drier areas of the US soya growing areas, Burgio said.
After the markets closed, the US Department of Agriculture said 81 percent of the US soyabean crop was planted as of Sunday, up from the five-year average of 71 percent. USDA said 50 percent of the soya crop had emerged, up from the five-year average of 45 percent.
Export news on Tuesday included word that Taiwan would hold a tender on Wednesday for 40,000 to 60,000 tonnes of US or Brazilian soyabeans.
USDA put export inspections for soyabeans at 9.99 million bushels, at the high end of a range of trade estimates for 6 million to 10 million. USDA said 908,000 bushels were shipped to China last week.
Cash basis bids for soyabeans in the Midwest early Tuesday were steady and farmer selling was slow.
However, traders said there were signs of increased farmer selling during the rally of futures on Tuesday and there was an increase in hedge selling from South American interests.
Friday's Commitments of Traders report by the Commodity Futures Trading Commission showed large speculators boosted their net long position in CBOT soyabean futures to a more than 2-to-1 long stance during the week ended May 24.
Funds were long 50,721 lots, up 13,745, and short 24,261, down 7,837 lots from the week before.
Technically, the soya market moved into overbought levels, with the nine-day relative strength index for July at 79. Chartists view a reading of 70 or above as indicating an overbought market.
Soyameal closed 50 cents to $7.00 per ton higher. July was up $6.00 at $214.70 per ton.
Soyameal volume was estimated by the exchange at 33,756 futures and 5,136 options.
Soyameal followed soyabeans higher. Gains were limited by hedge selling from South American interests.
Friday's Commitments of Traders report showed large speculators boosted their net long stance in CBOT soyameal futures in the week ended May 24.
Soyaoil futures closed 0.27 cent per lb lower to 0.03 higher. July was down 0.11 at 23.15 cents per lb. Soyaoil was pressured by profit-taking yet found some underpinning from the strong gains in soyabeans.
Soyaoil volume was estimated at 34,550 futures and 408 options.
Malaysian palm oil futures closed mixed overnight.
Cargo tracking service Societe Generale de Surveillance said on Tuesday that exports of Malaysian palm oil products for May could jump 18.6 percent to 1,357,689 tonnes from the 1,145,153 tonnes tracked in April.
Friday's Commitments of Traders report showed large speculators maintained their net long position in CBOT soyaoil futures in the week ended May 24.
South American soya closed unchanged to 22 cents higher amid light volume. July was up 7 cents at $6.80 per bushel.